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Chinese Drywall a Threat to Homeowners?

Drywall emits harmful sulfuric odors, homeowner lawsuits charge

By Jon Hood
ConsumerAffairs.com

February 23, 2009

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A class action lawsuit has been filed on behalf of homeowners experiencing problems with drywall manufactured in China, just as the Consumer Product Safety Commission (CPSC) ramps up an investigation.

The drywall, installed in homes in Florida, may be emitting sulfuric odors, potentially exposing homeowners to respiratory health problems. The emissions can also corrode air conditioning coils and wiring, posing a potential risk of electrical fire.

Although a number of drywall manufacturers may be implicated, the most commonly-cited is Knauf Plasterboard Tianjin Co., Ltd. (KPT), a China-based producer. The company regularly prints its name on the back of its drywall, making it the most easily identifiable potential culprit.

Florida homeowners have submitted almost 100 complaints to the Florida Department of Health about problems relating to their drywall, prompting U.S. Sen. Bill Nelson (D-FL) to petition the CPSC and Environmental Protection Agency to investigate.

In a statement, Nelson called for the agencies to determine the number of homeowners potentially affected by the problem, and to decide whether a recall needs to be initiated. Nelson also directed the CPSC to promulgate drywall safety standards to avoid a repeat of the issue in the future. Nelson said that he does not believe that any such standards currently exist. The CPSC said it has initiated an investigation.

Most of the complaints have come from homeowners in Southwest Florida, although the scope of affected homes remains to be seen. Miami-based Lennar Homes, the nation’s second-largest homebuilder by volume, has confirmed that KPT drywall was installed in some of its homes, and says it is taking steps to address the issue.

Homeowners have complained of headaches, dry eyes, and bloody noses, among other allergy-like symptoms. The Florida Department of Health says that preliminary tests show no “immediate health threat,” but is reportedly conducting further tests to determine the extent of health risks.

The problem was originally blamed on a shortage of American-manufactured drywall, ostensibly due to the housing boom and extensive construction in the wake of Hurricane Katrina. Recently, however, suspicions have arisen that the problem dates back further. Some Florida experts have suggested that the defective drywall was installed as early as 2004.

Additionally, Florida attorney Gary Rosen recently told the South Florida Business Journal that a number of complaints have been quietly settled over the past three years, suggesting that the problem is more widespread than originally thought. The problem is common enough that Florida real estate agents have begun adding disclosures to forms, informing buyers that they have the right to seek inspection to determine whether the home’s drywall poses health hazards.

Meanwhile, a class action lawsuit has been filed on behalf of affected homeowners, and more may be coming. The law firm of Parker, Waichman, and Alonso LLP filed suit on behalf of lead Plaintiffs Shane and Nicole Allen, representing a putative class consisting of all Florida homeowners whose houses were built using KPT-supplied drywall.

In addition to KPT, the suit names as defendants the Knauf Group, KPT’s parent company; Banner Supply, a material supply company based in Miami; and Rothchilt International Ltd., an exporter located in China.

The suit alleges that the drywall emits “one of several sulfur compounds including sulfur dioxide and hydrogen sulfide,” and estimates that 10 million square feet of defective drywall was used in Florida homes. The suit accuses KPT of using fly ash, a waste material from Chinese power plants, in manufacturing the drywall. Morgan & Morgan, a personal injury firm based in Orlando, is also involved in the action.

More litigation is likely to follow. Jordan Chaikin, an attorney with Parker Waichman, told a Florida newspaper that, “[a]s this case moves forward, more builders will be identified. That I'm sure of.” In a preemptive strike, Lennar Homes has already filed suit against KPT, Banner Supply, and Taishan Gypsum, another China-based drywall manufacturer. In its complaint, the builder insists that, “Lennar stands alongside its homeowners as a victim.”

The defective drywall is one in a line of problematic Chinese imports, from children’s toys to dog food to car tires. Nelson, the Senator from Florida, was involved in the promulgation of more stringent regulations on China-manufactured toys.

Anyone who thinks their home may contain defective drywall can learn more about the lawsuit online.

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